[EEBreh]

I purchased a 2015 BMW M235i with Cold Weather, M Performance Exhaust, Premium package. I paid $4,000 up front and got the payments down to $524.00/month. In short, I did this because I was not sure if I would like to keep the car or not. I actually like this car quite a bit and will probably purchase it. I negotiated with a few BMW dealers and I chose the one that gave me the lowest amount per month.

The buyout right now is $44,000 on the car (I have paid a total of $7,144). That would mean I have spent around $51,000 on the car (That seems outrageously high? I realize this takes taxes into account.) The residual is $30,600. Should I wait until the lease is up or should I try and buy it out now? Can I go back to the dealer for a better deal?

Thanks

[BEM-S4]

Wait

[Transfer]

I bought out a lease early once at 24 months and it was a big mistake. Unless you want to mod the hell out of it, don't take away your option to walk away at the end if the real value sucks, or buy if the value is greater than the buyout. BMW doesn't allow their leases to hold much equity in the end so that buyers will want to keep getting new leases.

[merlin3008]

I would wait. You've already paid the bank fees and such up front and there's no way to get those back. Retain the ability the turn the car back in if the resale value goes below residual.

[Cyberdemon]

Agreed, wait - your buyout is based on MSRP. As a result, even if you bought the car for $10,000 under sticker, if you didn't put any money down your residual after the first month is going to be MSRP minus ~one payment. So any "negotiated" value ends up being gone.

Lease buyouts go against the rules of the game. Wait until the end of the lease. You can then discuss options with the dealer at lease end. Some people have said they were able to negotiate more towards the end of the lease.

[BEM-S4]

You won't come out any worse financially, maybe better. Another thing to keep in mind, say you have a bad accident and the car isn't a total loss but you don't want it long term. Lease you just give it back and it's someone else's problem, owning it's your problem. May as well keep your option value open. Also if you lease again you should read up on putting $ down, never a good idea.

[BEM-S4]

Originally Posted by merlin3008

I would wait. You've already paid the bank fees and such up front and there's no way to get those back. Retain the ability the turn the car back in if the resale value goes below residual.

This is actually good if you want the car long term. If the market value is crap compared to your residual (which is often the case w BMW subsidized leases) you can negotiate a better buyout deal for yourself.

[EEBreh]

Thanks Guys! One last question - say I put an extra 10,000 miles on the car. If I pay the $1600 four months ahead of time, is that subtracted from the residual or did I just burn the cash away? Reason I am asking is if I theoretically walk away, I'd like to buy the miles ahead of time for the reduced rate vs having to pay the $0.25/mile fee.

Thanks

[BEM-S4]

Originally Posted by EEBreh

Thanks Guys! One last question - say I put an extra 10,000 miles on the car. If I pay the $1600 four months ahead of time, is that subtracted from the residual or did I just burn the cash away? Reason I am asking is if I theoretically walk away, I'd like to buy the miles ahead of time for the reduced rate vs having to pay the $0.25/mile fee.

Thanks

Depends on what you want to do after your lease is up. If you are going to keep the car don't pay it. If you are getting a new BMW don't pay it.

[Cyberdemon]

Originally Posted by EEBreh

Thanks Guys! One last question - say I put an extra 10,000 miles on the car. If I pay the $1600 four months ahead of time, is that subtracted from the residual or did I just burn the cash away? Reason I am asking is if I theoretically walk away, I'd like to buy the miles ahead of time for the reduced rate vs having to pay the $0.25/mile fee.

Thanks

Wait until the last possible day. Keep in mind that BMW offers the pull-ahead program, typically 6 months before schedule.

I traded in my F30 9 months early (not part of the pull ahead, dealer bought it outright) and the car was about 10,000 miles ahead. Since they bought the car outright that wiped out the need for me to pay anything.

Obviously the "Downside" is I had to lease another M235. So it really depends what you do at lease end.